IBM Decision Optimization
SC_Manager 270002HW8N Tags:  logicnet production transportation network xe plus planning modeling costs 3,408 Views
I attended the CSCMP Chicago Roundtable event at RR Donnelley last week (February 11, 2009) and heard an interesting presentation by my colleague Jay Jayaraman. He discussed a project we are working on where a manufacturer of a commodity has the choice of exchanging product with a competitor. The idea is that a company can source an order from a competitor’s location that is closer to the intended customer than its current manufacturing base. The impetus being a saving on transportation costs. The key is that both companies can benefit from the swap since they both can reduce transportation costs, and each company keeps their relationships with their customers. Of course, this scenario can only work with commodity-type products.
To take full advantage of the situation, our network modeling and production planning tool, LogicNet Plus XE, can be used to determine the best possible swaps as well as understand all the constraints that impact the results. Doing this type of analysis with Excel can lead to omissions and sub-optimization.
It’s fascinating how collaboration, even amongst “enemies”, can lead to benefits for all…
P. Louis Bourassa
Technical Account Manager
RILA Logistics 2010 - Meet David Simchi-Levi, IBM ILOG Chief Scientist, LogicTools Co-founder and MIT Professor
aeortiz 2700024WMF Tags:  logistics ibm_ilog_supply_chain_sol... ilog optimization retail 2,806 Views
Attention Retailers: IBM is attending the Retail Industry Leaders Association (RILA) Logistics 2010 Conference in Orlando, FL on Feb 21-24 at booth #322.
We invite you to join us on Monday, February 22 from 7:30 to 9:00 p.m. to chat with IBM ILOG Chief Scientist, LogicTools founder and MIT professor, Dr. David Simchi-Levi, as well as several IBM supply chain experts. In a retail world where demand-driven inventory and optimized global supply chains are more essential than ever, this informal event will give you the contacts and ideas you need to start making a difference. REGISTER BY February 17th.
IBM is a leader in Operations Research and we offer the world's most advanced optimization solutions for solving tough business and supply chain problems.
aeortiz 2700024WMF Tags:  optimization scm ibm ilog working smart chain event supply capital smarter 3,139 Views
The IBM Smarter Supply Chain Management briefing is coming to Toronto on March 4th, 2010! Save the date!
Join us on March 4 at the Intercontinental Toronto Centre's Caledon Room, to learn how your business can take advantage of these proven supply chain strategies and tactics to help improve bottom line profits:
1) Optimizing S&OP Processes
- Generate real value to the business
- Create significant improvement in KPIs
2) Leveraging Network Design to Create Lean Supply Chains
- Help reduce costs and better manage risks
- Develop efficient production and scheduling systems as more products are moved to the same plant
3) Improving Operational Efficiency
- Optimize the production process to improve manufacturing efficiency and reduce inventory
- Use a dynamic safety stock approach to improve supply chain flexibility
This one-day event for business executives and supply chain practitioners will focus on both the strategic and tactical decisions that are impacted by the current business environment. Thought leaders from industry and academia will discuss the challenges and circumstances that are driving the need for business solutions that optimize overall supply chain costs, free up working capital, and improve service levels.
Date & Location:
Thursday, March 4th
Intercontinental Toronto Centre
255 Front Street West
Toronto, Ontario M5V 2X3 Canada
MichaelWatson 270002K5FS Tags:  scm ilog optimization strategy retail optimization_supply_chain... 1 Comment 3,656 Views
This week’s Economist magazine has a special report on the “the data deluge.” The report points out:
“According to one estimate, mankind created 150 exabytes (billion gigabytes) of data in 2005. This year, it will create 1,2000 exabytes. Merely keeping up with this flood, and storing the bits that might be useful, is difficult enough. Analysing it, to spot patterns and extract useful information, is harder still. Even so, the data deluge is already starting to transform business…”
The article notes that the retailers are one of the leaders in amassing this data. For example:
“Wal-Mart, a retail giant, handles more than 1m customer transactions every hour, feeding databases estimated at more than 2.5 petabytes.” (A petabyte is 1m gigabytes)
Of course, this article fits nicely within IBM’s Smarter Planter. Smarter Planet’s big ideas are that the world’s systems will be instrumented, interconnected, and intelligent.
In IBM, the group behind this blog works on solutions to help firms make more intelligent decisions with this data. Often, due to the number of possible choices, optimization-based technology is the only way to get value from the information you’ve collected.
For example, for retailers we’ve worked with, they have taken advantage of the data in a variety of ways:
1. Determining what items should be stocked at a store, how the store should be laid out, and where the SKU’s should be on the shelf—this helps retailers increase store revenue and profitability.
2. Determining how the warehouses and stores should best be replenished, how the workforce should be scheduled, how products should flow through the supply chain, locating the warehouses, and routing trucks--- this helps retailers take costs of their supply chain.
In each of these cases, simply analyzing the data was not going to be good enough to extract value from it to give the retailer a strategic advantage.